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Friday, February 6, 2015

Harris sees integration costs from Exelis, savings later, (NYSE: XLS)

Harris Corp's acquisition of Exelis Inc will result in some integration costs continuing through fiscal 2016, but savings from consolidating headquarters and other measures will begin to emerge that year, Chief Executive William Brown said. Brown said on a call with analysts that the acquisition would also lead to higher revenues in fiscal 2016, noting a projected upturn in U.S. defense spending.He said the company would take a "hard look" at the combined portfolio, but the first priority was on integrating the two firms and closing the deal.Brown said he expected a positive reaction to the deal from both companies' U.S. military customers, given anticipated cost savings and the ability of the combined firm to focus more on innovation.

Exelis Inc. (Exelis) is a diversified, top-tier global aerospace, defense and information solutions company. Shares of XLS traded higher by 36.48% or $6.46/share to $24.17. In the past year, the shares have traded as low as $14.86 and as high as $20.02. On average, 1058250 shares of XLS exchange hands on a given day and today's volume is recorded at 6677750.